Human Resource Management and Business Success at Tesco

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Human resource management

Table of Contents
Introduction......................................................................................................................................3
LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organization with talent and skills appropriate to fulfil business objectives...................................4
P1.................................................................................................................................................4
P2/M2..........................................................................................................................................6
M1................................................................................................................................................9
LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization...................................................................................................................................10
P3...............................................................................................................................................10
P4...............................................................................................................................................11
M3..............................................................................................................................................12
LO3 Analyse internal and external factors that affect Human Resource Management
decisionmaking, including employment legislation......................................................................16
P5...............................................................................................................................................16
P6...............................................................................................................................................17
M4..............................................................................................................................................18
LO4 Apply Human Resource Management practices in a work-related context..........................19
P7...............................................................................................................................................19
M5..............................................................................................................................................23
Conclusion.....................................................................................................................................25
References......................................................................................................................................26

Introduction
Human resource management plays a vital role in any organization as it ensures the success of
the organization by improving its brand image that basically turns into helping the company to
sustain long in the market. This assignment will provide a thorough understanding of the
concepts of human resource management with respect to an organization. so, this assignment
will be carried out with the example of Tesco. Tesco is the topmost brand of the UK, it's a
retailing industry established in 1919 and it's headquartered in England. This company deals in
British global groceries and general Retailer Company that is doing business operations across
hypermarket, convenience store, supermarkets and superstores. Tesco is having 472,000
employees across the world and serving millions of customers through online and offline. This
company is having 3400 stores worldwide and providing better services, better pricing, strong
ranges and good quality to get a competitive advantage.
Figure 1- TESCO
Source- Marketing91, 2019.

LO1 Explain the purpose and scope of Human Resource Management in
terms of resourcing an organization with talent and skills appropriate to fulfil
business objectives
P1
Human resource management a complete program of business administration. HRM is basically
concerned with the process about the proper management of people who are employed in the
organization, formation of policies and focusing on the development of employees as well as the
organization. The success of any business relies on the quality of people they have (Bratton and
Gold, 2017). Thus, better employees give a better result to the company. HRM is highly
associated with the hiring process. But, talking about the wide program, it doesn't cover only the
hiring process but it also concerned with the training, development, compensation, performance
management and with the legal issues.
The purpose or mission of Human Resource management is to coordinate the human resource or
people with an organization in order to achieve the organizational objective.
HRM facilitates coordination's in the organization's people to attain the goal of business,
maintain employee satisfaction and fulfilling staffing needs. HRM accomplish the organizational
objective through the use of people, technology and the process that focuses on the internal
aspects of the organization rather than external factors (Srivastava and Dhar, 2016). HRM is
concerned with many different fields such as business management, statistical analysis,
psychology, process management, anthropology, information technology and sociology in order
to achieve organizational goals.
Therefore, the concentration of HRM is on internal sources to gain a competitive advantage. It
treats the people as the most significant and vital asset of an organization by managing them
systematically with the help of motivation, communication and the leadership in the organization
(Bratton and Gold, 2017).
HRM Functions-

 Aligning business goals and human resources
 Restructuring organizational processes
 Properly listening and responding to employees in order to maintain a high level of job
satisfaction.
 Staffing and training (hiring and firing employees)
 Managing changes and transformation
 Understanding and combining Labour laws and ethics.
Organizational level
Talking about macro level, HRM is in charge of supervising organizational culture and
leadership. They also ensure health, safety and security as well as take care of compliance with
labour laws and employment that distinct by geography (Srivastava and Dhar, 2016). HRM
department also serves as the organizations primary liaison with the representative of employees
that means labour union.
Employee level
If talking about an individual base, HRM is responsible to manage the employee experience and
satisfaction during the employment life cycle. Their first purpose is to attract the right employees
in the organization that means selecting the best talent through the recruitment process in the
organization. Providing training and development to the employees is another significant
function of HRM. HR evaluates the performance through performance appraisals and as per the
performance they reward the employees. HR is playing a more strategic role as they also
administer employee benefits and payroll. HRM also includes resignations, terminations, related
to performance layoffs and dismissals.
Human resource planning
Human resource planning is concerned with the determination of the competencies a company
requires to fulfil its objectives and to hire the right people as per the needs.
The main aim of the Tesco is to provide services which are demanded by customers. To do so,
Tesco is continuously analyzing the marketing trend to identify the demands of customers, their
preference and their satisfying factors (Srivastava and Dhar, 2016). To make the changes

according to the marketing trends takes the efforts of the HRM and depends on the functions of
human resource management of the Tesco. The main focus of HRM in Tesco is to train, motivate
and employ their employees according to the requirement. So, employees performance can be
improved and in result, the satisfaction level of the customer can be increased (Bratton and Gold,
2017).
P2/M2
Effective recruitment and selection process is very necessary for the organization as it helps in
hiring potential candidates for the related job. Companies can adopt a reactive or proactive
attitude approach to get the vacancies filled by the new jobbers. To recruit and select the talented
staff and managers requires lots of time, money and efforts (Padgett, 2016). But through an
appropriate approach, a company can achieve its organizational goals and get talents employees.
Here are some methods that can help the organization in recruiting and selecting potential team
members.
Methods strengths weaknesses
Websites and online job
boards- job boards refers to
the online boards that attract
candidates such as
monster.co.uk. And the
company can directly attract
the person through their
websites.
 It helps in managing
the vacancies and
provides coordination.
 Cost-effective
 Speed up the
recruitment process
because of technology.
 Large and global reach
and helps in gett5ing
instant applications.
 It also supports the
branding of an
organization through
blogs and videos
 Attract a large number
of inappropriate
candidates if the
person specification
and job description do
not draft carefully.
 Eliminated potential
applicants if they are
not computer literate.
 Technical difficulties
and badly designed
website can turn off
the applicants.

(Padgett, 2016).
Recruitment agencies- these
are private agencies that
provide permanent and
temporary jobs.
 Knowledge of
specialist’s expert is
involved.
 Due to dedicated staff
speed response is
there.
 Many people prefer to
contact with an agency
rather than employers
directly.
 It reduces
administrations as
most of the tasks are
performed by the
agency itself including
advertising.
 Vacancies do not
become public
knowledge. Thus,
privacy maintained
properly.
 The less experienced
or reputable agency
may send too many
candidates who are not
even meeting the
demands of employers.
 Most of the candidates
prefer to deal with
employers directly to
avoid the confusions
related to the job.
 It seems costly as 20%
fees are taken from
appointee’s salary
(Sekaran and Bougie,
2016).
Consultants- search
consultants are also known as
headhunters, employed when
the vacancy need to keep
private as the posts are related
to the seniors.
 Discretion
 Broader knowledge
about the recruitment
market.
 Determines or
identifying potential
candidates who can do
 Unavailability of
shortlisted people.
 Very costly.
 There is a limited pool
of candidates due to
the case of senior
level.

the job easily.
 Provides best
candidates as
consultant builds a
strong personal
relationship with
senior executives.
Press advertisement- this is a
recruitment method involves
national, regional and local
newspaper, trade or specialist
journals. The vacancies are
shown in these print editions
and it has an online presence.
 Many publications
offer both online and
offline package.
 Fixed cost
 Spread the positive
message about the
company.
 Helps in developing
brand awareness and
corporate message.
 The message about
recruitment is
communicated in a
positive manner
(Padgett, 2016).
 Encourage a large
number of people to
apply for the job.
 Involves high cost and
do not give a guarantee
of success.
 Return on investment
is not certain.
 High involvement of
money, time and
resources (Sekaran and
Bougie, 2016).
 Sometimes it seems
like a very slow
process when using the
specialist press.
 Clutter environment.
 Limited reach as it is
fruitful to those who
read that specific
journal or newspaper.
Professional referral
schemes- these referrals are
also known as internal
referrals, co-optation, and
professional referral are very
useful when the vacancy is for
 Provides high-quality
talent.
 Provides better
retention rates.
 Less costly in
comparison to other
 Provides a limited pool
of applicants.
 It distracts the
employees from their
duties.
 Employees get

the managerial role as per the
2015 talent planning survey
report (Padgett, 2016).
methods.
 Facilitates credible
direct sell of the
organizational
vacancy.
demotivated when
their referrals get
reflected.
M1
The core functions of HRM helps in fulfilling the business objectives efficiently:
Staffing- staffing refers to the process which includes hiring, placing and evaluating the
employee's performance in the organization. In simple words staffing means, hiring the right
person at the right position for the right job (Berman, et al, 2019). To pr5oduce the better results
in organization efficient workers are required which are actually hired by the HRM department.
Human resource development- HRM is a wider project. It not only hires the employees but
also trains them to enhance their skills and intellectual level to gain better results by improving
their working.
Benefits and compensations- this means rewarding the employees for their good work.
Employees must get a good amount of salary and wages in return for their hard work. Along with
these employees must be entitled to the rewards and timely bonuses that can boost the
employee's morale and motivate them to work better.
Safety and health- HRM also focuses on the safety and health of the employees as a healthy
mind and physic ensure the proper presentation of the employee at work. Medical
reimbursement, insurance, gym facilities etc. can be provided by the companies.
Maintaining employees and Labour relations- HRM acts as a bridge between the employees
and top management authority (Berman, et al, 2019). It facilitates good communications among
them that further helps in resolving problems, grievances and complaints of employees and
labours.

LO2 Evaluate the effectiveness of the key elements of Human Resource
Management in an organization
P3
Human resource manager has various responsibilities in the organization as they provide or
protect the interest of both employees and employers. For employers, HRM helps in managing
relkat5ionship with employees as well as they provide assistance on how to cut the higher cost of
labour. And for employees, HRM helps in protecting their rights in the organization in which
HRM make sure that employers are doing their work within the boundaries of labour law and
employment laws (Delery and Roumpi, 2017). So, here are some other benefits of HRM
practices within the organization.
Conflict resolution
HRM helps in resolving the disputes within the organization that can occur between the
management and employees, employers and employees and employers and management. HRM
provides an appropriate working environment by framing proper policies and procedures. HRM
also resolves the matters that can lead the disciplinary actions or conflict such as poor attitude,
insubordination, disrespectful workplace and usage of inappropriate language (Aguenza and
Som, 2018).
Training and development
Another responsibility of HRM is to provide training and development to the workers. HRM is
liable to organize the appropriate training program along with the right method to provide the
training as per the needs of the employees. Employees are the most important asset of HRM and
for an organization that helps in increasing the sales or customer experience (Aguenza and Som,
2018). HRM helps the worker to grab future opportunities through appropriate training and
development.

Employee’s relations
HRM of Tesco supports the employees and employers who feel that their rights are been
infringed in the organization. HRM helps those workers who experienced harassment or
discrimination during work. To provide help HRM interpret harassment and anti-discrimination
laws and support the employees in legal matters.
Information resources
Another benefit provided by the HRM practices is that the human resource manager provides
essential information to the employees or employers. They provide information regarding
employees' benefits, workers compensation benefits, and leave of absence and employee
assistance programs (Delery and Roumpi, 2017). In Tesco, HRM is also available if an employee
needs personal assistance in the organization.
P4
Tesco is having around 472,000 employees across the world and this organization is using a
participative management approach in order to maintain or manage a good relationship with
employees. The HR policies and procedures of Tesco are basically answerable for the success
and the ever increasing profit of the Tesco from many years. The main focus of Tesco is on the
training and development of their workers who are the ultimate achievers. Tesco is also helping
their employees in growing their employee's career that further leads to managing good
relationship with employees (Yassleeman, 2014). Tesco creates and develops their resources
with the help of their competencies and different capabilities that ultimately build commitment in
employees, develops individual skills through training programs, employment security, the
behaviour of the team which leads the better performance and productivity in the organization.
As the Tesco follows strategic recruitment and selection process that gives a competitive
advantage to the organization, as well as the top management of Tesco, put their rational
thinking in order to recruit the right candidate with right and perfect skills similarly as Tesco's
graduate scheme initiated (Noe, et al, 2017). Tesco is hiring graduates from the local market and
then providing them better training to deal with the local customers effectively that leads to
growth in the sales and supports potential growth of and profit of the business.

M3
Tesco uses a large number of human resource practices, methods and techniques which varies
from organization to organization, mathematics, management, psychology, statistics, sociology
and informatics. So, here below are some methods and techniques which are frequently used in
modern businesses in order to create professional management (Saridakis, et al, 2017). Methods
used in HRM practices are as follows-
S.no. HRM Practices Methods
1 To identify or determine the
needs for human resources
 Job analysis
 The critical incidents
method
 Determination of work
standards
 Time recording
 Analysis of work tasks
analysis
2 Forecasting human resource
requirements
 From business plan
 By using the
regression method
 Through trend analysis
 By determining the
size and structure of
market demand
 Through the company's
turnover
 Through the Delphi
method
 Through staff
fluctuation index
3 Recruitment and selection  Recommendations